Petrobras Day in New York

José Sergio Gabrielli de AzevedoPresident and CEO

New York, May 23rd 2006

Disclaimer

The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments.

Cautionary Statement for US investorsThe United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

1st Quarter 2006 (Brazilian Corporate Law)

Income Statement 1Q06 vs 4Q05

6.675

12.010

14.113

19.644

8.142

10.940

13.211

22.030

35,88638,638

Net Income

Operating Profit (1)

EBITDA

COGS

Net Revenues

1Q06 4Q05-7.1%

6.8%

9.8%

-10.8%

(1) Operating Profit and EBITDA of the previous quarters were readjusted in a form to purge the amount of provision for employee’s profit sharing program, accrued until the 3Q05 in other operating expenses.

-18.0%

• Operating result 9.8% higher than the previous quarter, mainly due to the absence of extraordinary items (operating expenses) occurred in 4Q05 as shown in the following slide.

R$

Mill

ions

More taxpayments

428

310

1.186

1.342

1.254

1.660

1.709

573Others

Exploratory Costs

General andAdministrative Exp.

Sales Expenses

1T06 4T05

Operating Expenses Analysis 1Q06 vs 4Q05

-21.5%

-28.6%

-75.3%

-25.3%

• Better operating expenses structure in the 1Q06 because of lack of extraordinary items occurred in 4Q05 such as: provisional expenses for doubtful receivables, personnel expenses, high exploratory costs and thermoelectric contractual pending expenses.

• In addition, there was a reduction on the maritime freight costs in 1Q06.

• 14% increase compared to last year same quarter due to the start-up in Campos Basin of P-43 and P-48 platforms (Barracuda & Caratinga) in December 2004 and February 2005 respectively. The production of both units stabilized in the second quarter of 2005.

• On April 21st 2006, platform P-50 (180 thous. bbld) began operation in Albacora Lest field and on May 8th the FPSO Capixaba (100 thous. bbld) started operating in Golfinho field. Two more units are expected for the 2H06: P-34 and Piranema.

thou

sand

bpd

Domestic oil and NGL production

1.795

1.543

1.7361.7251.730 1.751

1Q05 2Q05 3Q05 4Q05 1Q06 Apr/

∆ = 14% ∆ = 2.5%

06

1.761 1.8121.8041.6681.708

1.6491.6471.7311.6651.589

81

91

8783

91 91

81 8079 79

600

800

1.000

1.200

1.400

1.600

1.800

1Q05 2Q05 3Q05 4Q05 1Q0670

75

80

85

90

95

100

Domestic oil products productionOil products sales volumePrimary processed installed capacity - Brazil (%)Domestic crude as % of total

Refining and Sales in the Domestic Market

• Despite the increase of domestic oil in refinery throughput an increase of oil products production can be observed, resulting from operational improvements in refining, specially in the conversion of heavy oil.

20

40

60

80

100

Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

ARP Brazil (US$/bbl) Brent Average Price ARP USA (w/ volumes sold in Brazil)

68.9

74.05

56.9

4Q05Average

70.261.8

71.0

1Q06Average

Average Realization Price - ARP

• The ARP Brazil aligned with international prices, which are still pressured by geopolitical issues and Asian demand;

• The ARP in Reais decreased 4.9% from R$ 161,11 (4Q05) to R$ 153,16 (1Q06).

Petrobras and the Bolivian Measures

Timeline: PETROBRAS IN BOLIVIATimeline: PETROBRAS IN BOLIVIA

February February 19991999

GASBOL GASBOL InaugurationInauguration

AugustAugust19981998

SAL DiscoverySAL Discovery

JuneJune19991999SANSAN

DiscoveryDiscoveryJulyJuly19991999

StartStart--up up of exportsof exports

to Brazilto Brazil

SeptemberSeptember19991999

CertificationCertification8,8 TCF8,8 TCF

reservesreserves

NovemberNovember19991999

RefineriesRefineriesPurchasePurchase

DecemberDecember20012001

PB/EBR servicePB/EBR serviceStationsStations

inaugurationinaugurationPurchases partPurchases part

JulyJuly20012001

StartStart--upupDistributionDistributionOperationsOperations

OctoberOctober19961996

Seismic in SALSeismic in SALStartStart--up of GASBOLup of GASBOL

constructionconstruction

JanuaryJanuary20012001

ProductionProductionStartStart--up up

SALSAL

AprilApril20002000

Signature ofSignature ofgas salegas sale

contractscontracts

JanuaryJanuary20022002

SAL Phase IISAL Phase IIInaugurationInauguration

GASYRGGASYRGConstructionConstruction

StartStart--upup

AprilApril20032003

GASYRGGASYRGOperation StartOperation Start--upup

CompletionCompletionSAN PlantSAN Plant

PETROBRAS BOLIVIA REFINACIÓN S.A.

Before

After

PETROBRAS BOLIVIA REFINACIÓN S.A.

Before

After

PETROBRAS BOLIVIA REFINACIÓN S.A.

Before

After

PETROBRAS BOLIVIA REFINACIÓN S.A.

Before

After

Source: Superintendencia de Hidrocarburos

Hydrocarbon Production by Operator

Natural Gas (35,36 MM mcd)

August 2005

CHACO11%

PETROBRAS57%

BG BOLIVIA5%

VINTAGE1%PLUSPETROL

3%REPSOL-ANDINA

23%

Oil and Condensate (51966 bpd)

CHACO15,21%

PETROBRAS40%

BG BOLIVIA3%

VINTAGE0,36%

PLUSPETROL1%

REPSOL- ANDINA41%

Reduction in natural gas productionwould affect the production of

condensate and oil products (gas, diesel, GLP etc)

Main Refining & Distribution AssetsMain Refining & Distribution Assets

SANTA CRUZREFINERY20,000 barrels per day

COCHABAMBAREFINERY40.000 barrels per day

Assets owned by PBR or PBD:51% PETROBRAS49% PETROBRAS ENERGIA

OIL PRODUCTS DISTRIBUTION NETWORK (25% market-share)

PETROBRAS participation in the export chain of gas to BrazilPETROBRAS participation in the export chain of gas to Brazil

SAL

SAN

SAN ALBERTO e SAN ANTONIO22 from 30 MM m³/dayPETROBRAS: 7.6 MM m³/day OPERATOR

COLPA CARANDA1 MM m³/day

GASYRG16 from 30 MM m³/dayPETROBRAS: 44.5%

GASBOL (GTB)

RÍO GRANDE COMPRESSION

PLANTS

30 from 30 MM m³/dayPETROBRAS: 21%

30 from 30 MM m³/dayPETROBRAS: 11%

YABOG

Gas exports from Bolivia (MM m3/dia)

Source: YPFB

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

20,0

22,0

24,0

26,0

28,0

30,0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005TIEMPO [AÑOS]

VOLU

MEN

[MM

m3/

día]

EXPORTACIÓN ARGENTINA [MMm3/día] EXPORTACIÓN BRASIL [MMm3/día]Exports to Argentina (MMm3/day) Exports to Brazil (MMm3/day)

Volu

me

(MM

m3/

day)

Gas Purchase: contractual structure Gas Purchase: contractual structure

YPFB - PETROBRAS BOLIVIA/OTHER PRODUCERS - YPFB - PETROBRAS

Shared Risk Contract(exploratory and production concession)

Back-to-back contracts(gas sales)

GSA contract(gas exports)

Bolivia Brazil

Bolivian LegislationForum: Santa Cruz

Court of Arbitration: International Chamber of Commerce (ICC)

Forum: New YorkCourt of Arbitration: American

Arbitration Association

Investment Protection Treaty between Bolivia and the NetherlandsICSID (International Center for Settlement of Investments Disputes)

Bolivian LegislationForum: Santa Cruz

Court of Arbitration: International Chamber of Commerce (ICC)

Exploration and Production

Law 28.701

Bolivian congress enacted a new hydrocarbons (HC) law in Bolivia and determines that new E&P contracts be signed in 80 days

• HC commercialization concentrated in YPFB: definition of conditions, volumes and prices to internal and external markets;

• Establishment of additional participation of 32% for YPFB (total of 82%), during 180 days, for the production fields 100 million cubic feet per day (2,8 mm m³/day);

• Audits to defined permanent additional government participation,case by case;

• contract signature in 180 days;• Transference, at no cost, to YPFB from the shares of the Collective

Capitalization Fund (FCC), and nationalization of stocks necessary for state control 50% + 1 of Chaco and Andina.

Refining, Transportation and Commercialization

• concentration of activities in YPFB

Distribution

Law 28.701

General

• state control of all segments of the industry in the country

• nationalization of stocks necessary for state control 50% + 1of Petrobras Bolivia Refinación S.A. (PBR)

Transport and Logistics

• Transference, at no cost, to YPFB from the shares of the Collective Capitalization Fund (FCC), and nationalization of stocks necessary for state control 50% + 1 of Transredes (oil and gas pipeline operator) and CLHB (oil product terminal and pipelines operator)

As consequence of the Bolivian measures, petrobras will act to:

• Protect Petrobras’ interests through negotiations with the Bolivian authorities, and by all legal means possible and at all levels of the Bolivian judicial system as well as through avenues of international jurisdiction;

• Suspend all new investments in Bolivia as well as those related to the Bolivia-Brazil Gas Pipeline (GASBOL), including the current public tender bid for the pipeline’s expansion;

• Immediately initiate studies aiming at the diversification of supplysources including the possibility of an LNG regasefication project(s)

Recent Developments

Recent Developments

• Puerto Iguazú Declaration:• Joint declaration signed by presidents of Brazil, Bolivia, Argentina

and Venezuela.• Energy integration is essential to the regional integration of Latin

America in benefit of the Latin American people. • Preserve and guarantee natural gas supply, favoring a balanced

development among the consumer and producer countries. • Gas price discussions must take place in a rational and equal bases

that makes the projects feasible. • Foment joint investments in order to favor integral development of

Bolivia.

Designation of directors and trustees from Yacimientos Petrolíferos FiscalesBolivianos (YPFB) to Petrobras Bolívia Refinación (PBR):

• There is a series of legal and corporate proceedings that must be previously complied in accordance to the National Constitution and the laws of the Republic:

• negotiation between the parties of the consideration due from YPFB to Petrobras for the exchange of 50% plus 1 of PBR’s shares;

• promulgation of a special law authorizing the participation of YPFB as a shareholder of PBR;

• formalization of the transfer of a block of 50% of the shares plus 1 to YPFB;• amending the corporate bylaws; • convening of a Shareholders’ Meeting; among others.

• More important still, it will be necessary to amend Article 8 of Privatization Law 1330, which prohibits state-owned companies from acquiring assets, values and other rights from companies transferred to the private sector under this legislation

Recent Developments

• A Meeting in the spirit of the Puerto Iguazu Declaration, to discuss the issues arising from Decree, DS 28701 of May 1 2006.

• Respect to the sovereign decisions of the decree; disposition toimplement it in accordance to the applicable norm.

• Technical commissions reaching a decision on the following aspects:

• Conditions for conducting business during the transition phase;

• Definition of conditions and contracts necessary for the production of gas and its commercialization; and the refining process, including mechanisms and forms of negotiated compensation;

• Preconditions for the signing of the production contracts.

Recent Developments

• Conditions for Bolivian supply interruption could not be identified:

• Effects on the Bolivian market: smaller throughput in refineries for oil products production. Interruption of production mean increase in light oil imports in international prices (plus shipping charges) to supply Bolivia.

• Mitigative measures for the Brazilian market: usage reduction; fuel oil substitution; acceleration of national production; LNG

Supply Guarantee

* Includes investments in the Bolivian side of GASBOL

Petrobras Investments in Bolivia

74.3

151.9128.7 135.7

33.4

178

218.4

49.7

18.734.9

4.50

50

100

150

200

250

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

1Q 20

06US$ 1,028* million Total Investment

Taxes Paid by Petrobras

(Amount in USD million)(*) Source: Impuestos Nacionales

Ministerio de Minería e Hidrocarburos

Tax collection in Bolivia - 2005

US$ 2.237 billion

Petrobras Bolivia

US$ 53624%

26.5 31.443.0

54.3 61.5 69.630.0 30.0

30.030.0

30.030.0

11.011.0

4.0

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010

Domestic Production Bolivia Imports Increase in Domestic Produ

Natural Gas Supply

Million m3/day

REDUC/BELO HORIZONTE356 Km, 16 pol

CABIÚNAS/REDUC178 Km, 16 pol120 Km, 20 pol

REDUC/VOLTA REDONDA100 Km, 18 pol

CABIÚNAS/ARRAIAL DO CABO95 Km, 8 pol

SANTOS/SÃO PAULO42 Km, 12 pol

BRASIL/BOLÍVIA2589 Km

VOLTA REDONDA/SÃOPAULO325 Km, 22 pol

CABIÚNAS/CAMPOS85 Km, 6 pol

Rio de Janeiro

São Paulo

Porto Alegre

South and Southeast Gas Pipelines

Natural Gas Distributors

Recent Results H-Bio & Natural Gas Supply

H-Bio: new technology for the production of diesel oil

• H-Bio: refining process that utilizes vegetable oils as an input, in order to obtain diesel oil

• Hydrogenation of a blend of diesel and vegetable oils

• Main benefits :

• Doesn’t produce waste requiring special disposal;

• Complements the biomass usage program in the country’s energy framework

• Allows the use of vegetable oils from a variety of sources;

• Produces a higher quality of diesel oil;

Bifuel Production

Complementary and not competitive processes

Agribusiness

Farming

Seeds

or or

or

Ethanol

Methanol

Glycerin + Others

Biodiesel

B2 or B5mixture

orDiesel

Distributors

DieselRefinery

Hydrogen Diesel Fractions

Stations

ProcessedOil

Crushing

Transerestification

Potential usage of H-Bio

• H-Bio in two refineries

• Usage of 10% of vegetable oil corresponds to 256,000 m3/year

• Brazil soil oil exports in 2005 = 2,736,000 m3

• Vegetable oil processed in HDT = 9.4% of the exported soil oil

• H-Bio in five refineries

• Usage of 5% of vegetable oil corresponds to 425,000 m3/year

• Brazil soil oil exports in 2005 = 2,736,000 m3

•Vegetable oil processed in HDT = 15.5% of the exported soil oil

Short Term

Long Term

Natural Gas supply extension in Brazil

Santos Basin• Investments: US$ 18 billion over the next 10 years;

• Increase of 12 million m3/day in the supply of gas as from the 2H 08;

• In 2010, 30 million m3/day volume.

Peroá Field• Gas production will guarantee an 1.3 million m3/day supply to the State of Espírito Santo;• Supply may be duplicated with the start-up of the first 100km of Gasene.

Manati Project• Forecasted production of 6 million m3/day, attending the demand of the State of Bahia.

• Plan: raise production, from the current 15.8 million m3 per day, to 40 million m3 per day by the end of 2008.

• Development of two new oil and gas fields in Espírito Santo;

Other Highlights

•The new investments will reduce the country’s dependence on imported gas.

• Increase the supply of gas from the Marlim field (Campos Basin);• Expand gas production from the Merluza field, in the Santos Basin.

QUESTION AND ANSWERSESSION

Visit our website: www.petrobras.com.br/ri/english

For further information please contact:

Petróleo Brasileiro S.A – PETROBRAS

Investor Relations Department

Raul Adalberto de Campos– Executive Manager

E-mail: petroinvest@petrobras.com.br

Av. República do Chile, 65 - 22nd floor

20031-912 – Rio de Janeiro, RJ

(55-21) 3224-1510 / 3224-9947

APPENDIX

61,53

46,05

51,59

44,0047,83

32,02

41,59

35,38

56,9061,75

35,1137,48

32,8836,14

29,53

43,04

54,24 53,69

44,1939,70

38,98

34,3830,77

49,33

56,3952,70 57,59

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

US$

/bbl

Brent (average) Average Sales Price OPEC Basket

• The spread between the Brazilian average oil price and the Brentdecreased from US$ 10.84/bbl in 4Q-2005 to US$ 8.07/bbl in 1Q-2006. This heavy oil appreciation hindered refining margins.

US$

8.0

7 bb

l

E&P – Oil Prices

5.995,45 5,44

6,07 6,32

1Q 05 2Q 05 3Q 05 4Q 05 1Q06

∆ = +6% or US$ 0.25

Domestic Lifting Costs w/o Gov. Part.(*)

(*) The company, in order to promote better indexes adherence to its operating and management models, has reviewed their concepts, recalculating the values of previous periods.

Main Causes+US$ 0.07/boe: decrease in production (in bpd the production was stable,

but considering the total amount, it was below 4Q05);+US$ 0.18/boe: effect of average exchange rate due to Real appreciation of

3%.• In Reais tern, this indicator remained stable relative to the previous quarter

(R$ 13,69 as to R$ 13,73 in 4Q05).

3,0 3,4 4,3 6,0 5,5 5,4 6,1 6,34,0 5,1

6,47,6 7,8 9,6 9,9 11,024,8

28,8

38,2

47,551,6

61,5 56,961,8

-4

1

6

11

16

21

26

2002 2003 2004 1Q05 2Q05 3Q05 4Q05 1Q06

US$

/boe

-8

2

12

22

32

42

52

62

Lifting Cost Gov. Participation Brent

7.08.5

10.7

13.6 13.315.0 16.0 17.3

Lifting Costs including Gov. Participation (*)

• Increase in government participation in the lifting cost due to higher Brent prices and start-up of highly productive fields.

57%

63 %

62 %

56 %

Changes in Operating Profit (1Q06 vs. 4Q05)E&P

7.987

2.059 193807 10.523

96233

4Q05 Oper.Profits

Price effecton Net

Revenue

Volume effecton Net

Revenue

Average costeffect on

COGs

Volume effecton COGs

OperatingExpenses

1Q06 Oper.Profits

Changes in Operating Profit – R$ million

1,7511,736

• 31% increase in operating profit due to a rise in international oil price and a reduction of exploratory and drilling costs in the 1Q06.

• Although the average daily production increased, the total volume produced during the 1Q06 was lower due to smaller number of days.

Domestic Oil, NGL and Condensate – thousand bpd

1.74

1.961.86

2.031.90

1Q 05 2Q 05 3Q 05 4Q 05 1Q 06

Domestic Refining Costs (*) (US$/bbl)

(*) The company, in order to promote a better indexes adherence to its operating and management models, has reviewed their concepts, recalculating the values of previous periods.

• 6% reduction due to smaller number of programmed stoppages in the quarter;

• Taking out the Real appreciation of 3%, refining costs decreased 8%.

Changes in Operating Profit (1Q06 vs 4Q05) Supply

Changes in Operating Profit – R$ million

• Increase in operating profit due to inventory consumption accumulated at lower prices in the previous period;

• Main effects of smaller sales volume:• less days in the 1Q06 (R$ 650 MM) • Contraction of oil exports by the Refining terminals (R$ 340 MM)• Offshore (R$ 300MM) and domestic market (R$ 160 MM) sales• Oil products exports (R$ 101 MM)

• Price effect on Net Revenue: increase of ARP for the oil products foreign market;

2.302123

696

42 3.0131.606

1.672

4Q05 Op. Profit Price effect onNet Revenue

Volume effecton Net Revenue

Average costeffect on COGs

Volume effecton COGs

OperatingExpenses

1Q06 Op. Profit

8.142 2.752 2.386

1.436 8501.006

1.210

6.6751.483

4Q05 NetProfit

Revenues COGS Oper. Exp. Fin. and nonoper. exp.,others andEquity Inc.

EmployeesParticipation

MinorityInterest

Taxes 1Q06 NetProfit

Domestic Oil, NGL and Condensate – thousand bpd 1,7511,736

Changes in Net Profit – R$ million (3Q05 vs 4Q05)

• The 1Q06 net profit was negatively affected by:• Lower realization prices in Reais;• Higher income taxes (absence of tax benefit occurred in 4Q05 for the Interest on

Own Capital declaration);• appreciation of the Real by 3% causing losses on equity income line.

• These effects were partially offset by an improved expenses and costs structure.

10.940

2.536711 339 150 23 160

12.010

2.503

4Q05 Oper.Profit

E&P Downstream G&E Distribution International Corp. Elimin. 1Q06 Oper.Profit

Business areas’ share in Operating Profit – R$ million (4Q05 vs 1Q06)

• Results in other Areas affected by:• G&E: Lack of thermoelectric extraordinary contractual pending expenses (occurred

in 4Q05);• INTER: the higher oil & NG sales prices weren’t sufficient to offset the effect of the

Real appreciation on investments abroad; • DISTRIBUTION: market share decrease caused by aggressive competition.

450322 333 393 360

8399

65

344319

115

109

46105

2003 2004 1Q05 2Q05 3Q05 4Q05 1Q06

Oil Oil Products

Imports (thousand bpd)Exports (thousand bpd)

Net exports of oil and oil products

• 58 thous. bpd volume superavit in the 1Q06;• only US$ 41 million in deficit.(Exports: US$ 2.54 billion / Imports: US$ 2.58 billion)

181 161343

249 301

221246

250

262233

255213

235228

2003 2004 1Q05 2Q05 3Q05 4Q05 1Q06

Oil Oil Products

446 396

551 517564495

409424

368 425 459416492

559

Leverage

R$ million 03/31/2006 03/31/2005Short-term debt (1) 11.384 11.116

Long-term debt (1) 33.083 37.126

Total debt 44.467 48.242

Net debt (2) 21.484 24.825

24%26%

37%

32%

20%

23%19%20% 19%

26%

1Q05 2Q05 3Q05 4Q05 1Q06Net Debt / Net. Cap.Short-Term Debt / Total Debt

Petrobras’ Leverage Ratio

(1)Includes debt contracted through leasing contracts of R$ 3.300 million on December 31, 2005, and R$ 4.021 million on December 31, 2004.(2)Total debt - cash and cash equivalents

• The short-term debt increased because PRI Bonds maturing in 2007. • Long-term debt decrease of 4 base points compared to 12.31.05 due to:

• Real appreciation;• Financing amortizations.

Santa CruzCochabambaLa PazSucreTarija

PEB has assets in 5 out of 9 states in Bolivia:

International10.6%

Brazil89.4%

Bolivia0.1%

1Q 06 Investments• Total Petrobras: R$ 5.914 billion• Brazil: R$ 5.211 billion• International: R$ 703 million

• Bolivia: R$ 4.5 million

Petrobras Invesments2005 Investments

• Total Petrobras: R$ 25.710 billion• Brazil: R$ 22.557 billion• International: R$ 3.153 billion

• Bolivia: R$ 34.9 million

International10.8%

Brazil89.1%

Bolivia0.1%

* Results according BRGAAP standards

Other7.6%

Brazil88.7%

Bolivia3.7%

Total Reserves: 14.91 billion boe• Brazil: 13.23 billion boe• International: 1.68 billion boe

• Bolivia: 0.55 billion boe

* SPE Criteria

Total Production: 2.217 thou. boed• Brazil: 1.958 thous. boed• International: 0.259 thous. boed

• Bolivia: 0.053 thous. boed

Other9.2%

Brazil88.3%

Bolivia2.4%

2005 Proven Reserves and Production*

Bolivia20.0%

Brazil70.7%

International9.3%

Natural Gas Reserves• Total Petrobras: 420.2 billion m3

• Brazil: 296.9 billion m3

• International: 123.3 billion m3

•Bolivia: 84.1 billion m3

Bolivia13.0%

Brazil72.8%

International14.3%

Natural Gás Production• Total Petrobras: 59,816 thous. m3/day

• Brazil: 43,532 thous. m3/day • International: 16,284 thous. m3/day

• Bolivia: 7,753 mil thous. m3/day

Natural Gas Proven Reserves and Production

International6.2%

Brazil92.3%

Bolivia1.5%

Petrobras Results2005 Net Operating Revenues

• Total Petrobras: R$ 136.605 billion• International: R$ 11.468 billon

• Bolivia: R$ 2.014 billion• Other segments: R$ 125.137 billion

International6.9%

Brazil91.6%

Bolivia1.5%

1Q 2006 Net Operating Revenues

• Total Petrobras: R$ 35.886 billon• International: R$ 2.779 billion

•Bolivia: R$ 546 million• Other segments: R$ 33,107 billion

• Results according BRGAAP standards• Business segments figures calculated according to managerial criteria• Financial results allocated in the Business Unities

International3.0%

Brazil96.5%

Bolivia0.5%

2005 Net Profit• Total Petrobras: R$ 23.725 billion• International: R$ 567 million

•Bolivia: R$ 250 million• Others segments: R$ 23,158 billion

International1.3%

Brazil97.6%

Bolivia1.1%

1Q 2006 Net Profit• Total Petrobras: R$ 6.675 billion• International: R$ 236 million

• Bolivia: R$ 36 million• Others segments: R$ 6.439 billion

Petrobras Results

• Results according BRGAAP standards• Business segments figures calculated according to managerial criteria• Financial results allocated in the Business Unities

46.419.6 22.9

39.1

4.65.4

13.8

9.66.50

20

40

60

80

100

120

2003 2004 PN 2006/10*

Thermoeletric Industrial Other

2010

(*) considers the total supplying capacity, including bi-fuel conversion, contingency demand managing and isolated system in the North region. In the previous plan only the forecasted shipping of the thermo-electric demand was contemplated.Note: does not include Petrobras direct consumption

99.3

Million m3/day

37.930.7

Natural Gas Market in Brazil